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Kingsway International Holdings Limited Restatement of Balances for FirstThree Quarters of Fiscal Year 2009

TORONTO, Sept. 21 /CNW/ - Kingsway International Holdings Limited (TSX: KIH), an Asian based financial services firm, announced the restatement of balances for the first three quarters of Fiscal Year 2009 in connection with the Company's convertible debentures issued in September 2008.

During the preparation of the annual consolidated financial statements for the fiscal year ended June 30, 2009, it was determined that the conversion option of the convertible debentures should be included as a liability component instead of an equity component as the conversion will not result in the issuance of a fixed number of common shares of the Company in settlement of a fixed amount of the liability. In addition, the effective interest rate of the liability component is considered to be higher given the non-tradable nature of the debentures.

The impact of this change on the consolidated balance sheet and consolidated statement of operations of the Company for each of the quarters ended September 30, 2008, December 31, 2008 and March 31, 2009 is summarized as follows:

The adjustment had no cash impact on the financial statements of the Company.

About Kingsway International Holdings Limited

The Company is listed on the main board of the Toronto Stock Exchange (TSX) under the symbol KIH. The Group is a middle tier financial services provider, linking the global investment community with PRC's high growth economy. In addition to engaging in proprietary investment activities, the Group offers a variety of complementary, client focused services through its capital markets and asset management divisions.

Founded in 1990, the Group operates from offices in Hong Kong, Beijing, Shanghai, Shenzhen and Toronto.

FORWARD-LOOKING (SAFE HARBOUR) STATEMENTS

This press release contains forward-looking statements that are based on the beliefs of Management and reflect the Group's current expectations. In certain cases, forward-looking information can be identified by the use of words such as "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may", "should", "will", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking information. Forward-looking information is provided as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances.